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Why is money management so important? Put simply it is the ability to determine your trade size in relation to your overall portfolio position, and takes into account ope

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

n positions and cash in hand.

Imagine you are just starting out and have your cash ready and waiting, and let us suppose it's ?10,000. How much are you going to put on yo

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ur first trade 5%, 10%, 20%, or all of it? Do you consult your partner, your friends, or just see how you feel when you place the trade. Many traders, in fact probably mos

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

, have no idea about trade size, how to work it out logically, or even whether it is important. The problem of course (as ever) is that it is rather a dull subject, and on

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

e which requires discipline and attention to detail

One other point, before we move on, is that everything is based on percentages, for the simple reason that they can be

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

applied to any amount of money irrespectively. If you lose 100% of your money you are out of the game. If you lose ?100, how much does this represent of your starting cap

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

tal? From now on we work in percentages which can be applied to any amount in any currency.

Let us start with a very simple example, and assume that you have never traded

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

before. You therefore have 100% trading capital. If we are prepared to risk 50% of our capital per trade, how many trades could we get wrong before we were out of the gam

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

e? The answer of course is two, which does not seem very sensible, unless you are a gambler or simply trading for the thrill of losing money! So, how much should you start

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

with on your first trade? Most articles written on the subject suggest that this is 2%. I suggest that you start with a maximum of 1%. This means that you can get 100 tr

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ades wrong before you are out of the game. I know this seems unlikely but anything can happen, and bear in mind that even with the best trading system in the world you are

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

probably not going to do better than 60% success rate, or 6 in 10 trades going into profit.

OK, so now we have established that to start we are only going to risk a maxi

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

um of 1% of our trading capital on each trade. The next question is how much of our trading capital do we want to risk in total at any one time? Imagine if you had convert

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ed all your trading capital into open positions on the market and there was a world event which sent prices tumbling. How much of your capital could you afford to lose in

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

one such event and still recover? If we lost 5%, we could recover as this only requires a recovery of 5.2%, similarly a 10% loss only requires a recovery of 11.1%. Both of

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

these are achievable but anything more is going to be difficult. Some commentators suggest risking between 6% and 15% of our trading capital at any one time. Again, I am c

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

onservative and I suggest that you start with a maximum of 10%. This means that if the worst happens and there is a collapse in prices the most you would lose is 10% of yo

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ur working capital.

Please note that both the figures suggested are maximum percentages. If you want to keep it to less this is fine, as long as you remember where the ma

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

imum level is set. The key to success is combining your money management with good risk management tools, the simplest of which is the stop loss. Using good money manageme

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

nt with simple risk management tools will preserve your capital and keep you in the game, to live another day. Ignore them, and you will lose all your money – very quickly

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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The 80/20 rule is widely quoted but not implemented. Process sometimes prevails at the cost of both the supplier and the consumer.

Many people have gone to the carwash and seen all the cars lined up getting washed and all the money the carwash is making and thought to themselves, why this is a very good business and I would like to start a carwash.

If you are new to the online business world and would like to get involved without risking any of your hard earned cash then this article will show you one way to get involved for free. We are going ...

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